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  • Planning & Budgeting Using SAP Cost Center Planning

    Uploaded by

    Faraz Ahmed Quddusi
    282 views12 pages
    An introductory presentation to introduce Planning at Cost center level. Importance of Planning and Budgeting Importance of Cost Center Planning Weightage of Conversion Costs and Operating Expenses.

    Original Title

    Planning & Budgeting using SAP Cost Center Planning

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    An introductory presentation to introduce Planning at Cost center level. Importance of Planning and Budgeting Importance of Cost Center Planning Weightage of Conversion Costs and Operating Expenses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    282 views12 pages

    Planning & Budgeting Using SAP Cost Center Planning

    Uploaded by

    Faraz Ahmed Quddusi
    An introductory presentation to introduce Planning at Cost center level. Importance of Planning and Budgeting Importance of Cost Center Planning Weightage of Conversion Costs and Operating Expenses.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 12

    Cost Planning & Budgeting

    Management Meeting

    November 18, 2015

    International Textile Limited Information Systems

    Objective
    Preventi
    ve
    Measure
    s

    Cost
    Planning

    Cost
    Reducti
    on
    Variance
    Reportin
    g
    International Textile Limited Information Systems

    Monitori
    ng
    Actuals
    2

    Classification of Expenditure
    Upgrade
    Costs
    Capital
    Expenditure

    Expansion

    BA
    LA
    NC
    E S
    HE
    ET

    New
    Investment

    Expenditure

    BOM Related
    Revenue
    Expenditure

    International Textile Limited Information Systems

    Conversion
    Costs &
    Operating
    Expenses

    PR
    OF
    IT
    &
    LO
    SS
    3

    Historical Trend of Last 3 Months


    Cost Element

    ------------ Figures in Millions PKR


    -------------July 2015 Aug 2015
    Sep
    2015

    BOM Related Costs

    220

    377

    434

    Conversion Costs & Operating


    Expenses

    193

    174

    185

    Total Cost for the Period

    413

    551

    619

    47 %

    32 %

    30 %

    93

    70

    76

    Manpower Cost Proportion

    48 %

    40 %

    41 %

    Other Costs Proportion

    52 %

    60 %

    59 %

    Conversion & Operating Cost as a %


    of Total Cost
    Cost of Manpower

    International Textile Limited Information Systems

    Way forward

    International Textile Limited Information Systems

    Mapping in SAP

    Departme
    nt

    Expense
    Head

    Cost
    Center

    Cost
    Center

    International Textile Limited Information Systems

    Cost
    Element

    Cost
    Element
    s

    Conversi
    on &
    Operatin
    g Costs

    Cost Center Structure


    International
    textile Ltd

    Operations

    Terry
    Textile

    Garment
    s

    MJS

    Services

    Terry
    Trading

    Sizing
    Weaving

    Export

    Finance
    &
    Costing

    Informat
    ion
    Systems

    Internal
    Audit

    SAP
    Networks

    Processing
    CMT
    International Textile Limited Information Systems

    Cost Center Structure in SAP

    SAP TCODE
    OKENN

    International Textile Limited Information Systems

    Cost Element Structure

    SAP T-CODE:
    S_ALR_87013
    611

    International Textile Limited Information Systems

    Future Action Points


    Plan

    Monthly Meeting of all


    HODs

    Actu
    al

    Review of Costs & Variance


    Analysis

    Last Date to Submit Cost


    Center Plans = November
    30, 2015
    International Textile Limited Information Systems

    10

    Planning & Budgeting Techniques

    Budgets

    Fixed
    Budgets

    Rolling
    Budgets

    International Textile Limited Information Systems

    Increme
    ntal
    Budgets

    Zero
    Based
    Budgets

    11

    Time Frame
    Cost Center Planning Templates to be
    filled by:

    November 30, 2015


    Templates to be provided to Costing
    Department

    International Textile Limited Information Systems

    12

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